Assured Guaranty Statement on Stockton’s Chapter 9 Eligibility Ruling
Assured Guaranty Calls on City Leadership to Engage in Good-Faith Negotiations on a Plan That Treats All Stakeholders in a Fair and Equitable Manner
Public Company Information:
HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty) (NYSE:AGO) stated today that it respectfully disagrees with the Court’s ruling that the City of Stockton met its burden of satisfying the Chapter 9 eligibility requirements. Further, Assured Guaranty believes that the proceedings last week demonstrated that the citizens and other stakeholders of Stockton will all benefit from a consensual approach that truly resolves the City’s financial predicament and treats all of Stockton’s stakeholders in a fair and equitable manner.
Assured Guaranty noted that Judge Klein stated that the question of eligibility was “very much of a preliminary hearing, much like a qualifying heat in a race for a sporting event.”
The Court also observed that the real, substantive issues posed by the City's chapter 9 filing, including the ability of the City’s Ask to result in a fair, equitable and feasible Plan of Adjustment, will be addressed during the plan confirmation stage. Assured Guaranty believes that the City's current Ask falls short of the fairness requirements mandated by Chapter 9.
Assured Guaranty remains committed to working with the City to find a productive path forward that addresses the challenges facing the City. For example, Assured Guaranty has identified a number of practical solutions that will allow the City to emerge from bankruptcy in a much stronger position than when it entered and believes these solutions provide a realistic avenue to reach a consensual resolution with all stakeholders. Together with Stockton’s taxpayers and residents, Assured Guaranty has a substantial interest in seeing the City emerge from its financial predicament as a viable and sustainable governmental enterprise for the long term. Assured Guaranty looks forward to the City working with it and all the other stakeholders on a collective approach to achieve that goal.
Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty or the Company) is a publicly traded Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty and its subsidiaries can be found at assuredguaranty.com.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of April 1, 2013, and Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Robert Tucker, 212-339-0861
Managing Director, Investor Relations and Corporate Communications
Kekst and Company Incorporated
Jeremy Fielding, 212-521-4858
Donald C. Cutler, 415-852-3903
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications